Horizon Space Acquisition I (HSPO) - 2025 Q2 - Quarterly Report

Financial Performance - The company has incurred losses since inception, with no revenue generated to date, relying on working capital from the IPO and loans from the Sponsor [123]. - As of June 30, 2025, the company reported a net income of $147,341 for the six months ended June 30, 2025, compared to a net income of $1,362,675 for the same period in 2024 [136]. - The company has a working capital deficiency of $3,001,291 as of June 30, 2025, with only $13,259 in cash available for working capital needs [141]. IPO and Funding - The company completed its IPO on December 27, 2022, raising gross proceeds of $69,000,000 from the sale of 6,900,000 units at an offering price of $10.00 per unit [124]. - The company plans to use the net proceeds from the IPO to acquire a target business and cover expenses, including deferred underwriting commissions of $2,415,000 [138]. - The company has issued unsecured promissory notes totaling $300,000 to the Sponsor for working capital purposes, which may be converted into private units [131][133]. Business Operations - The company has not engaged in any operations or generated revenues, focusing solely on identifying suitable acquisition candidates [134]. - The company has until August 27, 2025, to complete its initial business combination, having extended the deadline through monthly extension fees totaling $840,000 [128]. Assets and Investments - As of June 30, 2025, assets held in the Trust Account amounted to $22,494,719, primarily in mutual funds [148]. - The Company’s investments in the Trust Account are classified as trading securities, with gains and losses included in interest and dividend income [148]. - The estimated fair values of investments held in the Trust Account are determined using available market information [148]. Financial Instruments and Accounting - The fair value of financial instruments is determined using market approaches, with assets held in the Trust Account classified as trading securities [156]. - The Company’s warrants qualify for equity accounting treatment, recorded as a component of equity upon issuance [150]. - The Company’s ordinary shares subject to possible redemption are classified as temporary equity and presented at redemption value [154]. - The Company’s share-based compensation expense is measured at fair value upon grant and recognized over the requisite service period [153]. Taxation - The Company is considered an exempted Cayman Islands Company, currently not subject to income taxes in the Cayman Islands or the United States [162]. - The Company has identified no significant uncertain tax positions requiring recognition in its financial statements [160]. Liabilities - The company is obligated to pay underwriters a deferred fee of $2,415,000 upon completion of the business combination [143]. - The Sponsor Note issued on June 13, 2025, has a principal amount of $300,000, bearing no interest and payable upon the business combination or maturity date [145]. - The company has no long-term debt or off-balance sheet financing arrangements as of June 30, 2025 [142][143].